The Service Contract Act of 1965 requires contractors and subcontractors providing services to the federal government to pay their employees "prevailing wages" and fringe benefits. These wage determinations are made by the Department of Labor and are based on surveys of wages paid for comparable work in the same geographic area.
The Register of Wage Determinations (RWD) is the official publication of the Department of Labor that contains the prevailing wage determinations for each service contract. The RWD is updated annually and is an essential tool for contractors to ensure compliance with the Service Contract Act.
In January 2021, the Department of Labor issued the updated RWD for the current year. This year`s RWD includes wage determinations for a variety of occupations, such as janitors, security guards, and food service workers. The wage rates in the RWD vary by geographic area and are adjusted annually to reflect changes in local wage rates.
Contractors must use the wage rates in the RWD for each service contract to determine the minimum wage and fringe benefits that must be paid to each employee. Failure to comply with the wage determinations can result in penalties, back pay, and even debarment from future government contracts.
It is crucial for contractors to stay up-to-date with the RWD and to ensure that they are paying their employees the correct prevailing wage rates. Companies should review the RWD and compare the wage rates to those currently paid to their employees to verify compliance with the Service Contract Act.
In conclusion, the Register of Wage Determinations under the Service Contract Act is an essential resource for contractors and subcontractors providing services to the federal government. Compliance with the prevailing wage rates is a crucial element in ensuring that government contracts are executed in accordance with federal regulations. Contractors must stay informed about the current rates, as changes can occur annually, and failing to comply can result in severe consequences.
Published by: gianni57